NORTH EAST OF ENGLAND OBJECTIVE 2 PROGRAMME - PRIORITY 4

ERDF SELECTION PROCESS - OCTOBER 2006

PLEASE READ CAREFULLY - NEW GUIDANCE

This document outlines the selection process that will be strictly followed to approve ERDF Objective 2 Priority 4 applications submitted in the October 2006 call for projects.

The call for ERDF remaining resource will be at the end of October, this is later than originally planned and is due to the increased activity in respect of Article 4 visits.
New Process
On this occasion there will not be a need for Sub-regions to rank their list of projects for support.

Instead the sub region must supply the Secretariat with a list of Projects that has been endorsed by the sub-region at Package level. Only those projects appearing on the endorsed list will go forward for appraisal.

All Project applications and the endorsed list must be received by the Secretariat by 18.30 hrs on Friday 27 October 2006.

Should we approve projects which request more funding than the resource available the Secretariat will prioritise those applications to be funded and create a reserve list of projects that may be funded from any future recycled resource that becomes available. This reserve list will remain active until 30 June 2007.
RESOURCE AVAILABLE
4.1 Trans £250,000
4.2 Trans £11,500
1) THE PROCESS TO BE FOLLOWED
Applicants should work in conjunction with their package co-ordinators to ensure that all project applications are complete, have all relevant additional documentation including Package Co-ordinator checklists, and follow the prescribed process.

Applicants should be familiar with the following documents when completing an application and reference the documents where required.

Government Office for the North East will be looking for clear well - worked answers against each of the questions of the application and in particular how the project will meet the skills needs of the targeted ward and the region. The programme management committee has endorsed this focus and applicants need to be aware that when applying for ERDF Objective 2 funds the proposed target group, activities and impacts cannot be compromised without the risk of losing the ERDF grant.

Projects that have been approved to deliver certain outcomes to identified target groups must note that they will be monitored within 6 months of commencement of the project. If the project is deemed as not being on target in terms of the specified groups and successful delivery of outcomes as agreed in the approved application then the ERDF grant will be withdrawn (subject to consideration of notified significant changes). Projects must also submit claims on a regular basis or risk loss of funding.
2) ELIGIBILITY OF PROJECTS
Please note that these guidelines must be followed. Applications will automatically be rejected if they do not conform to the following requirements.

1) Projects cannot start before1 January 2007 and projects must commence by 31 March 2007 or risk funding being withdrawn by Government Office for the North East. Projects must be financially complete by 30 June 2008.

2) Completed Application Form and Business Plan, one hard copy plus any additional documentation stated below, must be received in GONE by 18.30 hrs Friday 27 October 2006.

3) Applications must only be match funded through Public Sources. No Private match funding can be included. Please consult your Package Co-ordinator for further information.

4) No draft applications will be accepted.

5) Signed/letters of intent on headed paper, from match funders must be enclosed with the application.

6) A full breakdown of costs must be provided with the application this should be broken down into hours x weeks x £ for staff costs, and any apportionment calculation clearly defined. Whilst it is OK to base an application cost on estimates, the expenditure that is claimed through the project must be actual costs that can be clearly auditable. (This is also the case if it forms part of the match funding for the project, it is therefore vital that any organisation providing in kind match in this way are aware of their obligations and that they may be monitored as part of the project costs.

7) Environmental/ICT/Equal opportunities checklists should be completed.

8) Signed Package Co-ordinator checklists.

9) A Ready Reckoner should be supplied showing the outputs, results and indicators for the project.

10) Constitution and Accounts for new applicants.

11) If a private sector applicant, most recent audited accounts should be submitted.

The final date for Submission of Project applications (and lists) will be 1830 hrs Friday 27 October 2006.
3) APPRAISAL PROCESS
Government Office will appraise applications during weeks commencing 30 October, 6, 13 November 2006.

Applicants will be notified of queries during week commencing 20 November and will have 10 working days to respond to GONE (4 December 2006)

Government Office will have one further week to clarify any further points that may have arisen - No further negotiation will be entered into with the sponsor, and the information received will be the information used to make the decision as to whether the project can proceed for Selection. (8 December 2006).
THE PURPOSE OF THE APPRAISAL PROCESS
The appraisal process seeks to assess that the project proposals in all their constituent parts demonstrate:

In addition appraisers will look at any queries raised during the appraisal process. Project proposals should demonstrate that all the information provided in the different sections of the application form together make up a coherent project, i.e. the reader will understand what will be done for whom, when, where, why, and for how much. Are the answers in one section of the application form replicated in the business plan.

At the appraisal stage the following questions will be asked:

1. Which issues have been raised during the process?

2. Does the Project application form reveal any contradictory or inconsistency in the information provided?

3. Does the project best fit the regional needs of the North East in terms of its activities and outcomes?

I. Are the existing provisions already sufficient for the proposed types of activities or is there an under-provision?
II. Are the proposed activities appropriate and realistic to the geographic area targeted?
III. Has the organisation capacity to deliver, including track record and project management?

Are the appropriate occupational areas targeted?

Ideally, the aggregate total of all successful bids should cover the North East Region and have a good spread across all priority target groups, occupational areas and sectors.

Applicants are expected to make reasonable efforts to find out about other local bids, which may impact on the proposal they are submitting. The nature of any links should be explained in Section 4.9 of the bid. Applicants should seek advice from their local Package Coordinator - contact details are attached to this guidance.

No absolute 'pass/fail' decisions will be made on 'best fit' criteria until after the applicant has had the opportunity to respond to queries which have arisen through this process, but if answers are not satisfactory a 'failed appraisal' decision may be given.

Does the Project represent value for money?

I. Do the cost items and amounts reflect the proposed activities?
II. Are the cost items and amounts reasonable?

There are no absolute measures of 'value for money' applied in terms of maximum cost per beneficiary hour for example, as it is recognised that some projects may cost considerably more than others to implement, depending on the nature of the beneficiary group, level of support, geographical area covered etc.. The Guidance requires applicants to use actual salary costs paid to delivery and other staff (not notional "charge out" rates) and if this is not followed a 'failed appraisal' decision may be given. Similarly, applicants are expected to show a good and reasonable balance between delivery, administrative and 'other' costs.

When assessing bids, GONE will identify all costs they consider being unjustifiable. A significant number of such costs in an application may result in a 'failed appraisal' decision; a few such costs may result in further detailed justification being sought. In the latter case, if GO-NE is not satisfied with the answers given, then a 'failed appraisal' decision may result.

Has the applicant organisation proven ability and capacity to deliver the proposed activities?

I. Has there been history of underspend?
II. Have previous GO-NE project monitoring visits to the applicant organisation raised issued of concern with respect to the project delivery and outcomes?

Where an applicant cites previous experience in running ERDF projects they will be asked to quote the reference numbers of previous approved projects. This will enable GO-NE staff to check the claims history of that organisation against ERDF allocations given. Where an organisation has consistently under-claimed, they may be required to give reassurances that a system is in place to minimise the chance of underspends being repeated. Similar analyses will be given for the activities and the outcomes of previous projects.
4) SELECTION OF PROJECTS
A 'Selection and Approval Panel' will make the final decisions on the projects to be supported on 14/15 December 2006. The Panel will consist of Government Office Staff and Members of the Partnership who will score each project on the appraisal criteria, discussing each project in turn before final decisions will be made.
5) APPEALS
Those organisations that wish to appeal against a decision by the Selection and Approval Panel will have 10 working days from the date of the letter advising that the Project has failed minimum quality. Any appeals will be considered by a senior member of the Management Team.

Appeals must be received within 10 working days of the date of the letter advising that the project has failed the minimum quality threshold.
TIMELINE - Dates to Remember
Deadline for submission of Projects and Sub- Regional project lists to Government Office27 October 2006
3 Week Appraisal Period (W/C 30 October, 6 13 November 2006)17 November 2006
Initial Queries sent to applicants W/C 20 November 2006, to be answered within 10 working days1 December 2006
Government office will have one week to complete paperwork and prepare projects for approval, any project where questions have not been answered satisfactorily or where further issues have arisen will not go to approval.8 December 2006
Disks, revised applications, PMFC's etc to be submitted13 December 2006
Project will be selected for approval14/15 December 2006
Sponsors will be notified of decision during the following week i.e. by *22 December 2006
Appeals within 10 days from letter received by sponsor advising that project has failed minimum qualityDependent on date of letter

* Due to the Christmas Break projects will be notified of decision by e-mail with letters being issued early in the New Year.

Please note that some projects missed out on the April funding round due to errors that could have been avoided. As a suggestion please:

" Check all lists prior to them being submitted to Government Office

" Try to complete paperwork in good time - and ensure that the information in the business plan replicates the information in the application form.

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